Another Major LTC Player Making Sweeping Changes

[billberry12]

Arthur,

I don't know about in New York, but you are incorrect. In all the states I work in, My Future My Plan does include coverage for informal caregivers.

 

[2insureyou]

Indy Jewish agent seeks Captive Gen-worth-tile for fun, conversation and split deals on Internet price shoppers that refuse to pay excess premium to Transamerica. Serious inquiries only.

I'm gonna need a new computer screen...

BECAUSE I JUST SPIT MY COFFEE ALL OVER IT!!!!!!

 

[Arthur Rudnick]

I don't know about in New York, but you are incorrect. In all the states I work in, My Future My Plan does include coverage for informal caregivers.

If that's the case, then I stand corrected................

 

[CALTCAgent]

I am just really ticked off.

Bottom line is I dont have access to sell the best policy value anymore unless I get married to a Genworth career agent.

Indy Jewish agent seeks Captive Gen-worth-tile for fun, conversation and split deals on Internet price shoppers that refuse to pay excess premium to Transamerica. Serious inquiries only.

This reminds me of the Pina Colada song,


"If you like Pina Coladas, and getting caught in the rain.
If you're not into yoga, if you have half-a-brain.
I'm the Career Genworth Agent you've looked for, write to me, and escape."

 

[2insureyou]

So, I've seen something internally on Genworth reducing compensation, but not the discount change yet... is there an official letter somewhere confirming all this?

Check that... I went back and looked at my email, and it is an official letter from Genworth. It outlines a 15% reduction in gross commissions, with "a plan" to increase commissions in the future as they redesign the product and introduce that line in 2013.

Of course, they also put a disclaimer saying actual compensation may increase or decrease, at the discretion of Genworth. Their current timeline on potentially increasing commissions is in 9-12 months.

The reduction applies in all states, but there are a few variances on the 15% number.

Effective July 29, 2012

It had NO specifics on discount changes or product design changes, except to say that it is coming in 2013. Is there a letter that outlines other changes?

 

[Arthur Rudnick]

I went back and looked at my email, and it is an official letter from Genworth.
It outlines a 15% reduction in gross commissions, with "a plan" to increase commissions in the future as they redesign the product and introduce that line in 2013.

I'm not sure what email you read, but Genworth's official announcement makes no mention about " a plan" to increase commissions in the future.

The key changes, effective 07/30 are:
1) No more Lifetime Benefits
2) No more 10-Pay and/or Pay-to-65
3) 15% comp reduction (except in Delaware & Wisconsin which is 10%, and for Michigan applicants age 65+, there's a reduction of 5% in each of the 1st 3 years, for a total of 15%)
4) No preferred health rates
5) Reduce Couple's Discount from 40% to 20% when both apply and both are issued, and a reduction from 25%to 10% when both apply and only one is issued. All will be pending state approval.
6) Requirement to complete Family History profile
7) Major changes in their underwriting guidelines


"It had NO specifics on discount changes or product design changes, except to say that it is coming in 2013. Is there a letter that outlines other changes?"

I doubt that they are planning any changes in the future that will either add benefit options, loosen up underwriting guidelines and/or increase comp.

 

[yankee466]

I guess I, like others, never knew that completing the family history profile for the Genworth ap was not mandatory. Heck, I could have gotten out of a lot of houses 2 minutes sooner. Its not like I ever told people to search for death certificates to get the age right.........but I always had it filled in.

So,bottom line is that, if I have a single person, not in perfect health and not looking for a 10pay or unlimited benefit...and he/she is not skitzophrenic.....then the only change I would notice is the 15% reduction in my commission. The price of the product will be the same as it always has been.

I only need to worry about perfectly healthy people and couples getting a higher rate. I just now need to make sure he/she fills in the family history profile.

Since we all sell this stuff purely for the joy of helping others, and not for the money we earn.... I see no reason to even consider the other carrier options. It is all about what's best for the client, isn't it?

 

[billberry12]

Looks like TransAmerica and Mutual of Omaha might get a little more action from me now. They've been most of my business anyway in the last year or so. Seems like I don't get a lot of healthy couples like I used to. The spousal discount getting cut in half is the main deal breaker as I see it.

 

[csalter]

I guess as a salesperson this is where the rubber will hit the road. You will have to make decsions in which you have to look at the best interest of your client or the best interest of you family. If a company is paying less commission but may have the better plan, there could be an ethical dilemma as to offer a lesser plan with a higher commission.

I gather you always have this dilemma, but it seems in certain situations it may magnify itself. It's easy to give a good policy that offeres a good commission. However, it may not be as easy to give the good policy with a lower commission.

Interesting.

 

[2insureyou]

I had posted a letter I received that only outlined commission changes, but I have now seen the other changes outlined as well. Thanks for the update Arthur.

P.S. I took the letter down, but it did indicate further changes in 2013, and they said they planned to increase commissions in the next 9-12 months, but I'd seriously doubt things get better for the producer or client, as Genworth is actually being reviewed by Moody's to be cut to "junk" status, and they need/want to improve their financial position.